Growth of bank assets accelerates in Montenegro

Growth of bank assets accelerates in Montenegro
By Denitsa Koseva in Sofia February 21, 2017

Montenegro’s commercial bank assets rose 9.2% y/y to €3.77bn at the end of January, accelerating from a 9% y/y rise the month before, data from the central bank (CBCG) showed on February 21.

Montenegro’s financial system is largely stable, with adequate bank capitalisation and liquidity, the International Monetary Fund (IMF) has said. However, the high level of non-performing loans (NPLs), low provisioning and bank profitability, and weak asset quality were identified as sources of vulnerability. In June, the fund urged the central bank to conduct an Asset Quality Review (AQR) in order to address vulnerabilities caused by inadequate asset valuation in the banking system.

Bank loans, which accounted for 64.2% of total assets, increased by 1.5% y/y in January, after rising by 1.3% y/y in December, with total stock reaching €2.42bn. The improving result mainly reflected higher lending to households.

Corporate lending increased by 2.4% y/y to €1.03 in January, improving from a 1.9% y/y rise in December. Household loans rose 11.1% y/y to €1.02bn, accelerating from the 10.5% y/y growth the previous month.

Loans to financial institutions, which accounted for 10.4% of the total loan portfolio, declined by 29.8% y/y to €386mn, after falling by 28.7% y/y in December.

Data

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss